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Forex4you Technical Analysis 11 January 2011

EUR/USD: Technical Analysis

The EUR/USD pair bottomed and bounced back up to highs of 1.2990 yesterday but has started falling again this morning, after encountering resistance from an old trend-line from the November highs. The MACD is showing that yesterday’s correction could be an Elliot wave 4 of the wave down from the 4th January highs – with the wave 5th still to come. This wave could target 1.2850 initially, and then support at the 1.2750 level from the monthly pivot and the 61.8% Fibonacci level.

EUR/JPY: Technical Analysis

This pair has rebounded from the lows reached yesterday in what is probably an Elliot wave 4th wave of the decline from the 4th January highs. The next move will probably be a wave 5 down, targeting just below the recent lows at 106.60 perhaps. However the fall could be stunted by some larger cyclical buying pressure. This is because a larger wave down which began in October ’10 is finishing and a correction is on the cards. Therefore caution should be exercised in adopting any short positions. After the wave 5 down bottoms, there may be a fairly strong counter-trend move back up – perhaps to the 108.50 resistance mark.

Analysis by: written by Forex4you analyst


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